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Frax Share (FXS) is down by around 5% in the last 24 hours. Trading at $5.512 at the time of writing, the token has just been rejected from the $6.206 resistance level, and risks falling back into the confines of a bearish technical formation.

The slump comes after a whale dumped 35,995.79 FXS tokens (approximately $200,000) sold at $5.54, etherscan data shows.

Source: Etherscan

This was barely two days before another whale moved almost $10 million worth of FXS to an unknown wallet.

🚨 1,650,000 #FXS (9,775,464 USD) transferred from #Frax to unknown wallethttps://t.co/7KpMOOaQrM
— Whale Alert (@whale_alert) September 28, 2023

The transaction has plunged FXS token to the list of dumpers.

🔴 DUMP #FXS from 6.04 to 5.6 USDT = -7.35 %$FXS #fxs_usdt #FraxShare #Frax_Share #Frax #Share pic.twitter.com/OHygOVbwl7
— Crypto Pump Dump Alert (@PumpDumpAlert) September 30, 2023

It’s typical of whales to make moves during the weekends when retail traders are less active. The low volume of trades during this time makes the market susceptible to huge volatility, such that even a single transaction has the capacity to impact token prices significantly.

Downside Implications for Frax Share Price

After facing a rejection from the $6.206 resistance level on Friday, Frax’s share price is southbound recording a cumulative 10% slump since then. The current outlook points to FXS token falling back within the grasp of the descending parallel channel unless the demand zone (green order block) holds as a support level.

For a confirmed downtrend, however, Frax Share price must record a decisive break and close below the mean threshold at $5.424. For the layperson, a mean threshold is the midline of an order block, which in this case is the demand zone marked in green. Also, a demand zone is an area where buyers abound, meaning you would expect a lot of aggressive buying from this region. If FXS breaks below its midline, it would mean the buyers in this area are sitting on their hands, or that selling pressure overcomes their buyer momentum.

A break below the mean threshold would send Frax Share price to the mid-September lows of around $5.223. In the dire case, the slump could lead FXS to the September 11 lows at $5.021. Such a move would constitute a 10% fall, likely sending the altcoin back under the foothold of the bearish channel for a continued downtrend.

The Relative Strength Index (RSI) is in an overall southbound motion, pointing falling momentum. A closer looks shows an attempt to flatten at around the 48 level. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram bars are fading as they edge toward the negative zone. The MACD indicators are also falling, and could soon turn negative below the midline. This shows bears are gaining ground, thereby adding credence to the downside thesis.

On the flip side

Conversely, if the demand zone (green order block) holds as a support level, confirmed by Frax Share price sustaining above $5.424, FXS holders could recover.

The ensuing buying pressure could send Frax Share price north, breaching the 50- and 100-day Exponential Moving Averages (EMA) at $5.663 and $5.949 levels respectively. In a highly bullish case, the altcoin could foray above the $6.000 psychological level to tap the supply zone (red order block).

For a confirmed uptrend, the price must shatter the mean threshold of this order block at $6.206. Potentially, a breach of this hurdle could see Frax Share price tag the 200-day EMA at $6.532. Such a move would denote a 20% climb above current levels.

For conservative longs, the ideal take-profit levels should be around the 100-day EMA at $5.948, while stop losses should lie just below the mean threshold at $5.424. However, they should wait to see whether Frax Share price breaches the $5.424 level before taking their positions. If it does, shorts can set their take profit levels at $5.130. This trader cohort should also wait to see where the demand zone holds as a support level. Confirmation will be the price not flipping the mean threshold into a resistance level.

Meanwhile, there’s another project that offers better prospects, with analysts anticipating more value for money. Specifically, YouTuber and professional analyst Jacob Bury forecasts 10X growth potential. This is BTCMTX.

FXS Alternative

Traders are flocking to this new presale token, BTCMTX, the native asset for the Bitcoin Minetrix ecosystem. It is a tokenized cloud mining project where everyone has a fair chance at mining Bitcoin (BTC). What’s more, you do this in a decentralized fashion, thereby avoiding all the hassles that come with actual mining. These include hardware costs while upholding security and transparency.

Welcome to #BitcoinMinetrix! 🪙
Decentralized $BTC mining made simple. We’re revolutionizing cloud mining with $BTCMTX tokens, ensuring security and transparency.
Making it easier than ever. pic.twitter.com/iZPJN5GO8O
— Bitcoinminetrix (@bitcoinminetrix) September 26, 2023

In so doing, the project eliminates risks involving intermediary-related cloud mining swindles as token holders have full control. To get in on the action, buy BTCMTX and stake your holdings for unprecedentedly high Annual Percentage Yields (APY). Based on the latest update on the website, the current APY is as far-reaching as 3306%, with more than 12.6 million BTCMTX tokens staked so far.

In the current stage of the presale, one BTCMTX token sells for $0.011, but the value will increase once the next stage begins. This could be very soon, considering how fast the presale tokens are selling. So far, presale collections have reached $262,806 swiftly sprinting to the $3.08 million target.

Buy this stake-to-mine crypto here.